Chapter 03 · Section 3.1

Expiration time increase

The longer the time to expiration,

a) the higher the put premium;
b) the higher the call premium;
c) the lower the put premium;
d) the lower the call premium.
• e) a and b
  Yes. Be it a call or a put, it is better to have the right to choose extending over a longer period of time. As for the writer of an option, the longer the time to maturity, the greater the risk, and thus, the higher the premium. Continue
  f) a and c

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